Lead Plaintiff Deadline is May 13, 2019
NEW YORK, March 28, 2019 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the Northern District of California against Corcept Therapeutics Incorporated (“Corcept” or the “Company”) (NASDAQ: CORT) securities between August 2, 2017 and February 5, 2019, inclusive (the “Class Period”).
Investors who purchased shares of Corcept Therapeutics Incorporated are urged to contact the firm immediately at email@example.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website www.whafh.com.
If you have incurred losses in the shares of Corcept Therapeutics Incorporated, you may, no later than May 13, 2019, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in Corcept Therapeutics Incorporated.
The filed complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors:
- that the Company had improperly paid doctors to promote its drug Korlym;
- that the Company aggressively promoted Korlym for off-label uses;
- that the Company’s sole specialty pharmacy was a related party;
- that the Company artificially inflated its revenue and sales using illicit sales practices through a related party;
- that such practices are reasonably likely to lead to regulatory scrutiny; and
- that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On January 25, 2019, Southern Investigative Reporting Foundation (SIRF) published a report alleging that Corcept paid doctors to prescribe its drug Korlym for off-label uses in 2016 and 2017. The report condemned the company for exploiting regulatory loopholes, charging patients an excessive price for its lone drug product, and touting evidence for the drug’s effectiveness that—according to SIRF—doesn't exist.
On this news, shares of Corcept fell $1.52, or 11%, to close at $12.29 on January 25, 2019.
Then, on January 31, 2019, likely due to the increased scrutiny of its illicit sales practices, the Company forecast a sharp slowdown in sales of Korlym, projecting full-year 2019 revenue of $285 million to $315 million while investors and analysts had expected approximately $328 million.
On this news, the Company’s share price fell $1.15, or more than 10%, to close at $10.03 per share on February 1, 2019.
Subsequently, on February 5, 2019, Blue Orca Capital published a report alleging that Corcept’s “sole specialty pharmacy and exclusive distributor is an undisclosed related party” and that the relationship “creates a material risk that the Company is using its captured pharmacy to boost sales, hide losses, or engage in other financial shenanigans.”
Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at firstname.lastname@example.org, or visit our website at www.whafh.com.
Wolf Haldenstein Adler Freeman & Herz LLP
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Tel: (800) 575-0735 or (212) 545-4774
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